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Show HBansnnness S5 Iffixesafl tEsttaatt The Park Record D Section D Thursday, May 26 1 994 Page D1 Park City real estate activity continues to boom David Myers Be careful when loaning cash If you're loaning money to a relative, keep the arrangement as busines like as possible. You also must charge a reasonable interest rate, or risk getting hit with an unexpected tax bill. DEAR MR. MYERS: My son and his wife have asked us to loan them $12,500 for a down payment on a home. I think we should draw up some kind of contract, but my husband says we should write them a check and trust them to pay the money back. What do you think? Mrs. J.C., Palatine, 111. ANSWER: I have always told parents to be careful about loaning money to their children, in part because unexpected events such as a divorce can cause problems years from now. But since you have apparently made up your mind to make the loan, you should make the arrangement ar-rangement as businesslike as possible and sign a formal contract You can find standard loan documents for about $5 from local stationery and business-supply business-supply stores. If your son and his wife will be using the home they buy as collateral for the loan, you should file the document with the county recorder after they have purchased the house to give yourself aji, extra layer of protection If they default; You will also need to charge a reasonable interest rate on the loan, because, the Internal Rteyenue Service sets a minimum rate for loans to relatives that exceed $10,000. The rate called the "applicable federal rate" changes monttuy and varies based on the length of the loan. The rate was recently 4 percent for loans of less than three years and a little over 6 percent for loans of 10 years or more. If you charge a lower rate, the IRS will demand that you pay taxes based on the higher AFH which means that you would haveto pay taxes on interest that you didn't collect. ; DEAR MR. MYERS: We own a condoininium in a development for older people. You recently said that projects like ours must have "significant" "signifi-cant" facilities or services for older people in order to legally prevent younger people from moving in. We have an adults-only adults-only swimming pool and spa. Is (hat enough to ban young buyers or renters? Mrs. R.L., Orlando, Fla. ANSWER: No. Although the federal government has yet to say exactly what constitutes "significant" facilities, it has already said that pools and spas alone don't meet the test. "Pools and spas are so common now that you can't really argue that they make your project unique," said Marv Stark-Hood, an attorney who specializes in fair-housing fair-housing issues for the National association of Realtors in Chicago. "Free and Clear: Getting the Mortgage Monkey off Your Back" pro vides all the details. Send $3 and a long, self-addressed, self-addressed, stamped envelope to David Myers, P.O. Box 2960, Culver City, Calif. 9023 1-2960. David Myers is a nationally syndicated columnist.Questions can be addressed to David MyerslREFI, P.O. BOX 2960, Culver City California 90231 Real estate activity in the Park City area continued to boom through the first quarter of 1994, ending the same as in 1993--promising and with no sign of slowing. Dennis Gray, a local realtor, said for the first quarter totaled more than $71,624,000 in the first quarter of 1993 for an increase of 18. 5 percent. Gray said that the strong demand for homes in the area is putting pressure on the available housing and pushing the prices higher. He noted the average home price in the area has increased 16.4 percent over the past year. In addition to home and condominium sales, sales of other properties also continue to jncrease in the area. Gray said the sales of single-family building lots during the first quarter totaled $15,582,192, for an increase of 2.5 million of 19.5 percent over the first quarter of 1993. He said the recent hikes in interest rates have had little impact on sales, though they may have encouraged procrastinating buyers to proceed with their purchases out of concern rates might go even higher. "While home sales activity is strong throughout the area, it is most intense in the Snyderville Basin area immediately north of the Park City limits," Gray said. He attributed the strong growth to the resorts strong economy which has been enhanced by Jans will ' 1 f: k Photo by Dick Criffin Pictured above are Jan Petersen, president, in the foreground, and Russ Coburn vice president and general manager of the Jans family sporting goods Senate says no way to Senator's cup by MATTHEW KEITH Record staff writer The "Senator's Cup," a popular charitable event with both the participants and the Park City Ski Area, may not be returning due to a recent vote from the Senate. The Senate voted unanimously against activities like the Senator's Cup and the Utah Congressional Challenge, organized by Orrin Hatch, claiming that these events (even for charity), should not be funded by the taxpayers nor should they be used as a tool for lobbyists to try and gain favors from the elected officials. The House of Representatives also voted on these events and stated that they are used solely as a way to raise money for charitable organizations, and that only about 40 percent of the money raised goes toward the housing and food costs involved in bringing the participants to the event. With both the Senate and the House divided on this issue, it will now go before a conferance committee which will review it and bring it under a single vote. Utah's bid for the 2002 Winter Olympics. "The bid has made potential home buyers throughout the world aware of . Park City," said Gray. Like other areas of Utah, Park City is experiencing growing immigration. Many of the new residents are coming from California. But Gray added, "They are really coming from all over the country and all over the world." Gray said that while the area's quarterly report shows a wide variation in prices, prospective buyers or sellers ought to have a member of the board of realtors perform a comparative market analysis on specific property to determine the exact change in year-to-year prices. The following information is a break down by area of the various prices of homes and condominiums in Park City and the surrounding areas for the first quarter: Area 1 -Business and Historic District: Homes-1994:Average price $207,250. Total volume sold: . $1,248,500. Condominiums-1994: Average price $130,705. Total volume sold: $653,525. Area 2-Park City Ski Area section one:Homes-1994:Average one:Homes-1994:Average . price NA. Condominiums-1994:Average Condominiums-1994:Average price $135,297. Total volume sold:$ 4,194,210. Area 3-Park City Ski Area section two: Homes-1994: Average price $454,833.Total volume sold:$l,364,600. expand store to meet Park City growth If .. f ' jr.-- f . rf ' -y i - f. i The Senator's Cup has been held at the Park City Ski Area for the past 10 years, and in that time has raised millions of dollars for the Primary Childrens Hospital. In past years this event has been relatively low-key, however this year the Senator's Cup fell under public scrutiny after the television news program "Inside Edition" invaded the race with reporters and camera crews in an attempt to expose the event as nothing more than a free ski weekend for the Senators, with the taxpayers paying the costs. Currently the Senator's Cup is being looked into not only by the House and the Senate but also by the Primary Childrens Medical Center Board of Directors. Both the House and Primary Childrens feel that the race is a very beneficial activity for the Ski Area and a substantial contributor to the operation of the Medical Center. Park City Ski Area is also hoping that the Senator's Cup will be allowed to continue, since it is one of the yearly events which generates a tremendous amount of income for the ski area. , Sheri Allen, special events , i. i . ' .... Pictured above is The Park fastest growing areas in the Condominiums-1994: Average price NA Area 4-Silver Lake Village, Deer Valley, Solamere: Homes-1994: Homes-1994: Average price $1,401,186. Total volume sold: $5,604,744. Condominiums-1994: Average price $441,258. Total volume sold: $18,679,000. Area 5-The Aerie: Homes-1994:Average Homes-1994:Average price $508,750. Total volume sold: $1,017,500. Condominiums-1994: Average price NA. Area 6-Prospector Park, 'jUW " ft S C - coordinator for the Park City Ski Area, said, "We are hoping that the event will be allowed to continue. Since there was a split vote between the House and the Senate, it is in no way a done deal. We are hoping that the decision will come to a final vote which will allow the event to continue. Former Senator Jake Gam will research the Senator's Cup to determine whether or not it is an ethical event. Park City Ski Area has not made any final decision on whether or not they will continue to support the Senator's Cup. However, Allen did say that whatever the outcome, the Park City Ski Area would abide by the committees decision. "We have held the Senator's Cup Race for the last 10 years and we were getting ready to review it anyway. We are hoping that if the race is voted down that they will allow us at least a 12-month Rrace period in which to reorganize and make other plans. Since this matter has not been settled yet we are going to hold off on making any final decisions until June," Allen said. 9 J - ' ".. a, . i t J . 1 1,,,, - l - . v City Ski Area, and Resort Park City real estate market Prospector Village: Homes 1994: Average price $179,440. Total volume sold: $807,200. Condominiums-1994: Average price $54,820. Total volume sold: $822,300. Area 7-Park Meadows: Homes-1994:Average Homes-1994:Average price $571,800. Total volume sold: $2,859,00. Condominiums-1994: Average price $313,667. Total volume sold: $1,882,000. Area 8-Silver Summit, ParkWest Village, Highland Estates, Silver Creek Estates, Marketplace by DICK GRIFFIN Record staff writer You may have noticed that Jans at 1600 Park Ave. is expanding. The new space is slated to be used for offices to manage the growing number of Jans stores. The Jans family of retail stores currently consists of three full-service full-service shops (in the Snow Park Lodge at Deer Valley, the main store at Park Avenue and, the Park City Resort Center store by the skating rink), two gift accessory shops (at Silver Lake and the Bear Hollow Sports Park) and the pro shop at the Park Meadows Golf Course. According to Jan Peterson, president the pro shop came about naturally. "The employees there work for us in the Deer Valley store in the winter and Park Meadows needed someone who really knows retail to come in and manage the shop at one of the state's best courses. Further, the Franklin Quest Championship will be held there in August. Understand it wasn't us going to them. ..it's really a partnership. They'll concentrate on what they do and we'll do our best to improve it." While the lease has yet to be finalized, Jans has assumed the existing inventory and will be fine tuning it for next year. Executive Maw Cm pUcm h tm atdi 11000. -"" 11.000 10,000 9.000 1,000 7,000 6,000 i 5fl00 ' Si2tNta Tua'WaTTW Prt ' npw tndtetmldtUynmtmtlmtbmnmjndtdlotfimmml fm PROJECTED LODGING TALLY FOR WEEK OF May29-Ju4,1994 Total VUtarNifkU Nlftttj Anrfl YMr-to-lt TUibdj The visitor Kith laity It Pari Citf ptr night ptrwttk. i ' , f t ' JM w Center, which are two of the Silver Creek Junction: Homes-1994:Average Homes-1994:Average price $250,077. Total volume sold: $3,251,000. Condominiums-1994: Averagje-price Averagje-price $136,050. Total volume sold: $1,088,400. Area 9-Snyderville: Homes-1994:Average Homes-1994:Average price $258,549. Total volume sold: $9,307,775. Condominiums-1994: Average price $120,847. Total volume sold: $1,812, 700. Source: Park City Board of Realtors Vice President And Generar Manager Russ Coburn said, "Our next step will be to get control of the existing inventory and line up next year's inventory at the golf show in August." The gift shop at the Utah Winter Sports Park at Bear Hollow plans to expand on the role of sole western supplier to competitive jumpers next year by renting equipment to the public. "As far as I know we will be the only shop in the west that rents jumping skis, boots and helmets. We will also have those 260's (centimeter jumping skis) for sale," Coburn said. Jans' contribution to the community is measured in the numerous events they sponsor each year. It started with the fund raiser for the Junior Race Program and. today includes the JansRossi Handicap Challenge and the Winter Welcome, which draws over 500 people annually. Jans also sponsors the Jans cup which is a five-race series for masters at Park City and Deer Valley. Jan Peterson's goal is, 'To get better at what we do. We've got the best talent in the business and that includes anyone, even the big chains. The key to the success of Jans has been and is the relationship between our employees and the people in the community. Pillow Talk fitowi" represent the number of gueas lodging ltdlities cm teoornmodtte per night Ptrk City hu tpproxImMtely 12,000 pillowi 10.307 2.157 (Saturday) M73 738.316 lodlMMl3 by tddixt tin luimbtr of visilort Ia |